Redwood Health Club still in foreclosure limbo

Dr. Richard Miller's deal to buy the Redwood Health Club has fallen through, but his group, and others, remain interested in reviving what had been a community institution since the late 1970s.

Savings Bank of Mendocino County, which foreclosed on the failed business, accepted an offer made by Miller and Mike Dell'Ara; Miller then hired building inspector James Deering. Inspections showed deferred maintenance in excess of $300,000, Miller said.

"That included a new roof, all new siding, work on the parking area and the pumps and more," Miller said. He said Savings Bank looked at the list of repairs and declined to pay as part of the deal. Others have since looked at the club property, but Miller says he is still willing.

"I'm open to them coming back in for negotiating with me," he said.

Redwood Health Club is advertised on Loopnet.com for $690,000, listed by Barry Cusick. That's less than half of what the bank is owed on the property, according to county records. The bank has declined to speak about the ongoing deal.

Dentist Michael Golden started Redwood Health Club in the late 1970s. Golden sold it shortly thereafter to Don Pollard, whose ownership came to an end on June 30.

"When the Starr Center came in, they lost about 60 percent of members, that is when things started getting rough with them," said Dell'Ara.

Miller said he didn't know the club was in foreclosure when Pollard posted final closure notice in mid-June. Once he heard, he set out to reopen the club.

A big hope is that Miller and Dell'Ara can still bring Larry Hinson on board as manager. Hinson has wanted to buy the Redwood Health Club for many years. Hinson tried to buy Redwood Health Club even before he opened his own Mendocino Sports Club on Highway 1 a decade ago. He said he would have comment if and when a deal with Miller can be worked out.

Hinson tried to buy the club again earlier this summer, but was unable to work out bank financing. The two clubs would be merged, if the deal can be made.

Dell'Ara and Miller said having one less club might help them compete with the sales tax-subsidized Starr Center.